Correlation Between Doubleline Core and Pnc International

Can any of the company-specific risk be diversified away by investing in both Doubleline Core and Pnc International at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Doubleline Core and Pnc International into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Doubleline Core Fixed and Pnc International Equity, you can compare the effects of market volatilities on Doubleline Core and Pnc International and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Doubleline Core with a short position of Pnc International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Doubleline Core and Pnc International.

Diversification Opportunities for Doubleline Core and Pnc International

0.06

Correlation Coefficient

Doubleline Core  Pnc International

Significant diversification

The 3 months correlation between Doubleline and Pnc is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Doubleline Core Fixed and Pnc International Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pnc International Equity and Doubleline Core is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Doubleline Core Fixed are associated (or correlated) with Pnc International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pnc International Equity has no effect on the direction of Doubleline Core i.e., Doubleline Core and Pnc International go up and down completely randomly.

Pair Corralation between Doubleline Core and Pnc International

Assuming the 90 days horizon Doubleline Core Fixed is expected to under-perform the Pnc International. But the mutual fund apears to be less risky and, when comparing its historical volatility, Doubleline Core Fixed is 4.63 times less risky than Pnc International. The mutual fund trades about -0.04 of its potential returns per unit of risk. The Pnc International Equity is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  2,225  in Pnc International Equity on March 3, 2025 and sell it today you would earn a total of  185.00  from holding Pnc International Equity or generate 8.31% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Doubleline Core Fixed  vs.  Pnc International Equity

Doubleline Core Fixed

Risk-Adjusted Performance

Very Weak

Over the last 90 days Doubleline Core Fixed has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong technical and fundamental indicators, Doubleline Core is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pnc International Equity

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Pnc International Equity are ranked lower than 7 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak technical and fundamental indicators, Pnc International may actually be approaching a critical reversion point that can send shares even higher in July 2025.

Pair Trading with Doubleline Core and Pnc International

The main advantage of trading using opposite Doubleline Core and Pnc International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Doubleline Core position performs unexpectedly, Pnc International can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Pnc International will offset losses from the drop in Pnc International's long position.

The idea behind Doubleline Core Fixed and Pnc International Equity pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Technical Analysis module to check basic technical indicators and analysis based on most latest market data.